With the collaboration of Ericka Araújo
Equipment for solar energy projects is set to become even more expensive in Brazil due to a decision taken by the Federal Government this Wednesday (28). The measure comes as a bombshell to the sector, which had already been pressured by rising raw material prices and the withdrawal of tax incentives by the Chinese government on photovoltaic modules.
With the new decision, inverters, microinverters, built-in energy storage systems (BESS), and imported photovoltaic generators with a power output above 75 kW will be directly impacted. Given this scenario, photovoltaic equipment distributors interviewed by [source name]... Canal Solar They stated that raising the tax rates will inevitably result in the increase being passed on to consumers and raising the final price.
According to business owners, the sector currently operates with tight margins, which limits its ability to absorb tax increases. "Any increase that occurs will have to be passed on. It's certain: there will be (another) increase," stated one of those interviewed.
Measure announced
The measure taken by the Federal Government determines a realignment of import tax rates. The Government proposes that “NCMs with a rate lower than 7,2% will increase to 7,2%; NCMs with a rate lower than 12,6%, but equal to or greater than 7,2%, will increase to 12,6%; and NCMs with a rate equal to or greater than 12,6%, but lower than 20,0%, will be taxed at 20,0%”. This information is contained in the Deliberations of the 233rd Ordinary Meeting of the committee.
"Thus, the tax rates for these two large product groups will be concentrated in three tiers: 7,0%, 12,6%, and 20,0%, maintaining the exceptions already approved by GECEX for BK and BIT tax rates above 20,0%. Furthermore, an exception will be made for a group of strategic BIT products aimed at data centers," the Government emphasizes.
It is important to highlight that the proposal presented considered an increase to 7%, but Gecex decided on an increase to 7,2%, in order to respect the tariff standards of the Common External Tariff.
The measures are not restricted solely to the energy sector, but rather to all capital goods (CG) and information technology and telecommunications goods (ITG), affecting industrial machinery, electrical equipment, electronic components, and automation and telecommunications systems.
In practice, all products classified as BK and BIT will operate with higher costs, potentially impacting prices, investments, and purchasing decisions. The measures were approved at the 233rd Ordinary Meeting of the Gecex (Executive Management Committee) and will officially come into effect upon publication in the DOU (Official Gazette of the Union), which should happen in the coming days.
Photovoltaic modules and items with zero tax rate.
The photovoltaic modulesThose whose rates were previously reinstated are not affected by the new decision and will continue with a 25% rate, since the realignment approved by Gecex is limited to rates of up to 20%. "For NCMs that currently have a zero rate but are not included in tariff exemptions, the measure will only take effect from March 1st – giving importers time to request their inclusion in the special regime," Gecex stated..
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Answers of 11
For general alignment, the official document from the 233rd meeting shows that the Committee approved the realignment of import tax rates for BK and BIT, including inverters and BESS. Inverters and BESS, which currently have rates below 20%, will now have rates of 20,0%. In other words, the change WAS DELIBERATED, and is not just an internal proposal. Although approved by Gecex, the increase does not automatically take effect at the time of deliberation. Deliberations need to be formalized by an act published in the Official Gazette of the Union (DOU). That's how it works; Gecex first deliberates, and then the text needs to be officially published (in the DOU) with the final wording and the effective date. The new rates should come into effect in the coming weeks after publication in the DOU.
It's more than clear...that in this government, those who produce will always be taxed, crushed, and exploited by an economic team that only thinks about collecting revenue and doesn't have a plan to develop the economy.
To compensate, let's have another billion-dollar COP so the president can give a nice speech in favor of the environment and energy transition.
Brazil is a proponent of clean energy but prevents its people from acquiring and maintaining it with high taxes. What lies behind this, among other things, is the maintenance of large energy generators in Brazil. Facilitating energy consumption increases production, quality of life, and even tax revenue.
Our environment minister is more concerned with the pockets of her friends and friends in the electricity companies, in addition to doing absolutely everything to harm those who pay her salary: the taxpayers.
Let's change the title to something more realistic and decent: The government is once again acting against the population, increasing taxes and harming both people's wallets and the environment. Wait, there's a minister who should be acting against this; after all, even though she's from the North, she opposed the paving of the BR-319 highway because, according to her, paving a road makes vehicles consume less fuel, therefore pollute less, and depend less on other services like tractors and ferries, thus protecting the environment. Only those who don't want to protect other interests that aren't the environment or the population can't see it. After all, everything here takes 30 days to arrive.
Tax and misgovernment are nothing new, a government of the devil.
Only those who are uninformed were surprised by this news. The hydroelectric sector has already been lobbying Congress against photovoltaic energy generation.
Summary of the situation: The government approves yet another action against the population and the environment, and then they want to say that paving an already open road will harm the environment.
Good news that they've eliminated tariffs on those inputs. It benefits those who produce here in Brazil.
Wrong headline, nothing was approved, only a proposal.